Since the establishment of the first open-end fund "Huaan Innovation," 23 years have passed. As of the latest data in September 2024, the scale of open-end funds has exceeded 10,000, with a size of 27.65 trillion. Although closed-end funds were issued earlier, their scale is much smaller compared to open-end funds. So, why are open-end funds so favored by investors?

1. Lower entry barriers for open-end funds!

Usually, the minimum purchase is 1 yuan, and many investors must have realized that the funds they often buy are open-end funds.

2. More flexible subscription and redemption!

Unlike traditional closed-end funds, investors can subscribe or redeem at any time based on their actual capital needs and their requirements for the profit or loss of their holdings, with virtually no significant time restrictions.

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3. Uncertain fund shares and size!

We often find that the size of a fund may start at just a few hundred million and then surge to several billion, while some funds that were large in size may later become much smaller. This is due to the freedom to subscribe and redeem in open-end funds, leading to an uncertain fund size.

Faced with such a large number and scale of open-end funds, we will find that there are both excellent and poor funds, which is a reflection of the capabilities of the fund managers. As investors, how should we choose? I believe we can focus on the following three aspects:

1. Fund managers!

As the primary responsible party for the fund, the fund manager is extremely important. Their every action and decision directly affects the fund's performance.Firstly, fund managers should not be changed frequently, as each manager has their own management style. Changing managers is essentially like changing the product itself.

Secondly, it is crucial that fund managers have sufficient years of experience in the industry. I recommend selecting managers with more than ten years of management experience. The reason is straightforward: only those who have been through the trials of the market can have sufficient experience.

2. Look at the maximum drawdown of the fund!

Investors often make a significant mistake by focusing only on the returns of a fund without considering the drawdown. This is akin to buying stocks with the expectation of them rising without considering the possibility of a decline. If a product has a large increase and a small drawdown, it is very much worth considering. However, if a product has a large increase and a similarly large drawdown, it is advisable to deliberate carefully!

3. The industry and sector it belongs to

The current market trends are mostly structural, and the occurrence of widespread increases is rare. Accurately stepping into the right industry is essential, as even if the historical market does not rise, we can still achieve substantial returns. This tests the investor's ability to make choices. If one is unsure of how to choose, I believe that in the current market, directly selecting funds related to indices is an excellent option.

In addition to open-end funds, in recent years, we have also been vigorously promoting various types of funds such as FOFs, REITs, and ETFs to enrich the choices for investors!

On September 10th, we will be launching the CSI A500 ETF fund for the first time. Currently, there are already 10 approved by the Shenzhen regulatory authorities, with a total scale of 21 billion yuan, evenly distributed between the Shanghai and Shenzhen stock exchanges, with 5 each!

The CSI A500 gathers leading stocks from various industries on the Shanghai and Shenzhen stock exchanges, meeting the current market development needs, embodying a "high-quality development market." For investors who are always confused about stock selection and do not know how to explore golden stocks, this might be a good time to consider choosing the CSI A500 ETF!